Ch3 Generating and Exploiting New Entries

A  They do not represent substitutes for individual learning.

B  They are used to decrease the risk of downside loss related to new entry.

C  They cannot enhance the performance of a firm.

D  They are normally rare and valuable.

A  When communication within an organization occurs through formal channels only. When a company has to deal with the costs associated with learning

B  When communication within an organization occurs through formal channels only. When particular roles are clearly defined and demarcated by a firm

C  When a company has to deal with the costs associated with learning. When there is some overlap or gaps in responsibilities

D  When there is some overlap or gaps in responsibilities. When particular roles are clearly defined and demarcated by a firm

A  Indicator

B  Scope

C  Limit

D  Total

A  limit

B  risk

C  indicator

D  scope

A  imitation

B  duplicating

C  forecasting

D  shadowing

A  It does not involve the erection of barriers to prevent other firms from entering a market.

B  It provides first movers with the chance of setting their product as the industry standard.

C  It is typically considered a disadvantage for first movers.

D  It does not provide entrepreneurs with a period of limited competition.

A  It does not range from a narrow- to a broad-scope strategy.

B  It refers to the probability, and magnitude, of downside loss.

C  It is not a choice about which customer groups to serve and how to serve them.

D  It depends on the type of entrepreneurial risk taken.

A  When there is a technological development. When the entrepreneur is uncertain over market demand

B  When the entrepreneur is uncertain over market demand. When the firm copies the practices of other firms

C  When the entrepreneur adopts market scope strategies. When there is a technological development

D  When the entrepreneur adopts market scope strategies. When the firm copies the practices of other firms

A  Potential customers’ uncertainty do not stem from the broader context in which a product is to be used.

B  It is typically not present when a product or service is highly innovative.

C  It can be present even when a new firm has a superior product when compared with its competition.

D  The problem of customer uncertainty can only be eliminated by offering informational advertising.

A  point success factors

B  window of opportunity

C  key success factors

D  lead point indicator

A  elapsed time

B  start time

C  end time

D  lead time

A  can learn by trial and error over time

B  will not face any competitive rivalry

C  can prevent the changes that occur in an industry

D  will not be able to select the most attractive segment of the market

A  uncertainty for customers

B  neglect for customers

C  deprived for customers

D  division for customers

A  key resources

B  revenue

C  key success factors

D  profitability

A  They are able to prosper under every circumstances as they are the first movers. They experience less competitive rivalry than do other firms.

B  They experience less competitive rivalry than do other firms. They are able to reduce costs as they can spread their fixed costs because of economies of scale.

C  They are able to prosper under every circumstances as they are the first movers. They are able to replicate the products of their competitors.

D  They are able to reduce costs as they can spread their fixed costs because of economies of scale.. They are able to replicate the products of their competitors.

A  enter the market even if he or she has no market or technological knowledge

B  always gather more information before entering the market

C  quickly exploit the opportunity with his or her product or idea

D  wait and see if another entrepreneur experiences success in the same market

A  creative

B  managerial

C  entrepreneurial

D  innovative

A  a firm’s resources should be valuable, rare, and inimitable if it seeks to outperform its competition

B  they are not the inputs into a firm’s production process

C  in order to truly understand the value of a resource, a firm must consider the individual rather than the bundle

D  a firm’s resources are only comprised of its machinery and capital

A  the availability of an opportunity in a new market

B  whether the entrepreneur believes that he or she can create the market demand

C  the amount of time the entrepreneur spends searching for information

D  whether an opportunity actually exists or not

A  bundle of resources

B  window of opportunity

C  stage of innovation

D  door of chances

A  Knowledge

B  Power

C  Capital

D  Wealth

A  Manpower

B  Resources

C  Machines

D  Structure

A  True

B  False

A  False

B  True

A  exclusion

B  omission

C  commission

D  negligence

A  always gather more information before entering the market

B  wait and see if another entrepreneur experiences success in the same market

C  quickly exploit the opportunity with his or her product or idea

D  enter the market even if he or she has no market or technological knowledge

A  leading

B  exceptional

C  entrepreneurial

D  managerial

A  Valuable

B  Rare

C  Inimitable

A  Rare

B  Valuable

C  Inimitable

A  Valuable

B  Inimitable

C  Rare

A  new trial

B  top entry

C  new innovation

D  new entry